The BIS and Tribunals Service has launched a consultation as part of the government’s plan to give businesses more confidence to take on new workers.

Prime minister David Cameron said: "A critical element of the government’s growth strategy is to create the conditions which allow businesses , especially smaller businesses, to flourish and expand.

"Giving businesses the confidence to take on somebody new will be a real boost to the economy, and help generate the sustainable growth we need."

The move comes in response to concerns raised by employers that the tribunals system has become too costly, takes too much time and places unnecessary strains on small businesses.

Andy Cook, managing director of FFEI, said: "I very much welcome the proposed changes because the ‘have a go’ culture has been both damaging and costly to UK employers.

"I have always struggled with the concept that someone can put a claim against a company with no risk."

The key proposals in the consultation include increasing the qualifying period for employees to be able to bring an unfair dismissal claim from one to two years, speeding up the tribunal process, and tackling weaker and vexatious claims.

Dani Novick, managing director of Mercury Search and Selection said: "In an industry dominated by SMEs, and with companies spending on average £4,000 to defend tribunal cases, this is a big issue.

"Although few in number, the so-called vexatious claims are galling for employers, so measures to tackle them will be very welcome."

Kirk Galloway, managing director of Buxton Press, added: "I’m sure these changes will be welcomed by all those businesses, like Buxton, who are endeavouring to maintain and grow their market share in today’s challenging economic climate."

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CONSULTATION PROPOSALS
• Extend qualifying period for unfair dismissal claims to two years
• Legal changes designed to speed up cases
• Tribunals to be given powers so that weaker cases can be dealt with without causing disproportionate costs to the employer